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‘Good Nudge Lullaby’: Choice Architecture and Default Bias Reinforcement

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  • Thomas de Haan
  • Jona Linde

Abstract

Because people disproportionally follow defaults, both libertarian paternalists and marketers try to present options they want to promote as the default. However, setting certain defaults and thereby influencing current decisions, may also affect choices in later, similar decisions. In this article, we explore experimentally whether the default bias can be reinforced by providing good defaults. We show that people who faced better defaults in the past are more likely to follow defaults than people who faced random defaults, hurting their later performance. This malleability of the default bias explains certain marketing practices and serves as an insight for libertarian paternalists.

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  • Thomas de Haan & Jona Linde, 2018. "‘Good Nudge Lullaby’: Choice Architecture and Default Bias Reinforcement," Economic Journal, Royal Economic Society, vol. 128(610), pages 1180-1206, May.
    • Handle: RePEc:wly:econjl:v:128:y:2018:i:610:p:1180-1206
    DOI: 10.1111/ecoj.12440
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    Cited by:

    1. Lemken, Dominic, 2020. "When do defaults stick and when are they ethical? Taxonomy, sytematic review and design recommendations," DARE Discussion Papers 2005, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Roxanne Kovacs & Maurice Dunaiski & Janne Tukiainen, 2023. "The effect of compulsory face mask policies on community mobility in Germany," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(4), pages 1027-1055, October.
    3. David Schneider & Johannes Klumpe & Martin Adam & Alexander Benlian, 2020. "Nudging users into digital service solutions," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(4), pages 863-881, December.
    4. Lemken, Dominic, 2020. "When do defaults stick and when are they ethical? - taxonomy, systematic review and design recommendations," Key Food Choices and Climate Change Project 307568, Georg-August-Universitaet Goettingen, Department of Agricultural Economics and Rural Development.
    5. Cox, James C. & Kreisman, Daniel & Dynarski, Susan, 2020. "Designed to fail: Effects of the default option and information complexity on student loan repayment," Journal of Public Economics, Elsevier, vol. 192(C).
    6. Wagner, Valentin, 2022. "Heterogeneous effects of grade framing," Labour Economics, Elsevier, vol. 74(C).
    7. David J. Freeman & Hanh T. Tong & Lanny Zrill, 2021. "Default-Setting and Default Bias: Does the Choice Architect Matter?," Discussion Papers dp21-08, Department of Economics, Simon Fraser University.

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